Renowned investment analyst Cezary Graf has shared a dire outlook for the Bitcoin price. In his opinion, BTC could collapse to catastrophic levels.
On May 11, Graf said that Bitcoin prices could collapse to $3. This wild prediction was based on Tether and Binance’s influence over Bitcoin markets.
Graf has often shared his thoughts on several subjects in the field of finance and economics with his 42,500 Twitter followers. On his website, he promotes a series of investment webinars and offers consultation services.
According to the Polish financial advisor, a collapse of Tether or Binance or both could send Bitcoin prices crashing to levels not seen for a decade:
He said (translated):
“Without Tether and Binance, the current 27,000 USDT per BTC will turn into $2.7 per BTC. Then crypto can be financially attractive again. Better to lose an opportunity than money. Better to wait.”
On May 13, he clarified that the price prediction was a fall to $2,700, not $3.
Could Bitcoin Price Collapse?
Tether has a huge influence over crypto markets, with almost $83 billion USDT in circulation. This currently represents around 7% of the entire crypto market capitalization.
However, the firm recently released an assurance report stating that the stablecoin is fully backed. Tether reported an increase in excess reserves that reached an all-time high of $2.44 billion. It noted that most of its reserves are invested in U.S. Treasury Bills.
Binance is the world’s largest crypto exchange, so its influence is also substantial. Binance has also assured its clients that it has full reserves backing tokens listed on the exchange. However, the company is currently in the crosshairs of U.S. regulators who are carrying out a sweeping crackdown on all crypto exchanges.
Furthermore, Binance has recently seen a decline in trading volumes but remains dominant.
These doomsday predictions should generally be taken with a pinch of salt. Anti-crypto commentators such as Cezary Graf, Nouriel Roubini, and Peter Schiff often come out with wild remarks when crypto markets are bearish. They’re generally pretty quiet when the bull markets are in full swing.
BTC Price Outlook
Bitcoin prices were trading up 1.3% on the day at the time of writing. As a result, the asset was changing hands for $27,195 during the Monday morning Asian trading session.
The market correction is likely to deepen, with analysts predicting a fall to around $24,000. A catastrophic crash to $2,700 is highly unlikely at this stage.
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